Rates held at 3.50 to 3.75 percent in 9-3 split vote

The Federal Open Market Committee voted 9-3 to keep the benchmark rate at 3.50 to 3.75 percent.

Beth M. Hammack, Neel Kashkari, and Lorie K. Logan dissented, advocating for a 25 basis point rate increase to curb persistent price pressures.

The Committee noted that economic activity continues to expand at a solid pace, supported by strong productivity growth and robust capital investment.

However, inflation remains elevated relative to the 2 percent target, driven in part by energy supply shocks and ongoing conflict in the Middle East.

While job gains match workforce growth, the Fed reaffirmed its commitment to price stability.

To support its policy stance, the Board of Governors unanimously maintained the interest rate paid on reserve balances at 3.65 percent and the primary credit rate at 3.75 percent.

The Open Market Desk at the Federal Reserve Bank of New York will execute standing overnight repurchase agreements at 3.75 percent and reverse repurchases at 3.50 percent with a $160 billion daily counterparty limit.

Additionally, the Desk will purchase Treasury bills as needed to maintain ample reserves.